Employee Satisfaction at Mcdonalds - Case Study Example

EMPLOYEE SATISFACTION AT MCDONALD’S Student’s name Code & Course Professor’s name University City Date Abstract There has been a convergence of interest on the efforts organisations make in understanding the conditions that foster improved satisfaction levels among employees. The basic reason that supports these renewed interests is the perception that shifts in internal structure and employment practices present changes in the ties that bind employees to the workplace. Job satisfaction has been an important topic in the present organisations, including fast food outlets. While concerns at McDonald’s employee satisfaction are high, recent changes compounded by consumer preference warrants research on its satisfaction levels among employees. Amidst such business changes, this paper confronts, employee satisfaction becomes a determining factor in fuelling its success. Data was obtained from 124 employees at the fast food outlet. The findings from the research articulated showed that averages of 52 % of the participants were satisfied with McDonald’s employee management. Contents 1.0 Introduction 4 2.0 Literature Review 5 4.0 Sampling 8 Population and Sample Size 8 4.0 Data Collection and Analysis 9 4.1.1 Pay Rate Satisfaction 10 4.1.2 Working Conditions 10 4.1.3 Stress at the Working Place 11 4.2 Discussion 11 4.2.1 Employee Satisfaction at McDonalds 11 4.2.2 McDonald’s as an Employer of Choice 12 4.2.3 What is conceptualized as good or not good about Working for McDonald’s? 12 4.2.3 What are ethical issues felt by the employees with respect to workplaces or management policies? 12 4.3 Ethical Consideration 13 4.4 Validity and Reliability of Data 13 4.6 Research Limitation 14 5.0 Conclusion 14 Employee Satisfaction at McDonald’s 1.0 Introduction Changing dynamics in the fast food industry has witnessed an increased consumer awareness of health and fitness. Increasingly aware consumers are showing a changing consumer preference towards healthy diets. With increasing concerns about obesity, a pronounced understanding on the health benefits of good nutrition, consumers have turned away to healthier food options from their out-of-home dining alternatives. Popular media has showcased an increased obesity among Australians, surpassing that of North America (McLean, 2008a). Report asserting to Australia’s obesity health concerns has appeared in media internationally (McLean, 2008a). In this respect, the fast food industry is compelled to undergo numerous changes. The alternative for this industry is twofold: respond to the changing consumer dynamics, failure to which the restaurant are bound to face reduced market share. McDonald’s has the in the past responded to such changes with the introduction of healthier alternatives in the menu range; where numerous campaigns have been designed in responding to such changes, for instance, the ban on caged eggs (News.com, 2014). The shift in business dynamics will significantly affect workplace satisfaction in divergent platforms. Workplace satisfaction is imperative in various dimensions given its impact on workplace productivity (Parvin, & Kabir, 2011). Internal changes in various processes and approach to business questions McDonalds approach to achieving workplace satisfaction among its employees. The underlying theoretical stance is that major changes in an organisation are powerful enough to create significant changes in employee attitude and well being. 1.2 Research Questions Dissimilar but related research questions will guide the development of the research. i. Is McDonald’s considered as a good employer? ii. What is conceptualised as good or not good about working for McDonald’s? iii. What are ethical issues felt by the employees with respect to workplaces or management policies? Objectives The following objectives will purposely guide the research paper; i. To assess whether, McDonalds is viewed as an employer of choice in Australia ii. To determine ethical issues confronting McDonalds Australia, with respect to management policies iii. To determine the pros and cones of working for McDonald’s 2.0 Literature Review Various authors advocate different reasons regarding what employees feel in the workplace. Discrepancy theory asserts that an individual’s job satisfaction emanates from what a person feels to be important; as opposed to the fulfilling his/her needs (Aswathappa, 2007). Tentatively, this theory posits that dissatisfaction occurs in the event an individual received less than what is expected (Fred, 2011; Ashatu, 2011; Aswathappa, 2007). Herzberg’s Theory The theory’s author investigated the question: “what do people want from their jobs? Divergent variables can be used in understanding what people feel as good or bad about their workplace environment. Motivation is viewed as an inner force that compels the individuals to want to perform better and offer others with satisfactions. Hygiene factor include aspects of the working environment like interpersonal matters, working conditions and organisational policies. Factors relating to job satisfaction as described by Herzberg include: pay, supervision, company policies, working conditions, status, interpersonal relationships and security. Intrinsic factors such as recognitions, achievement, advancement and responsibility affected workplace satisfaction (Tahir, 2011). Extrinsic factors such as security, status, administration, supervision and interpersonal factors are potential influencers of job satisfaction (Robbins & Judge, 2009, p. 211; Snape & Redman, 2010). Equity Theory Walter et al., (1973) shows how individuals perceive fairness with respect to social relationships. This theory posits that during social exchange, an individual identifies the amount of input gained from a relationship in comparison to the output, as well as, the effort another person has put in specific tasks. Inputs include: effort, time, commitment, adaptability, tolerance, enthusiasm, trust and flexibility as an imperative tool. Consequently, output is the negative and positive consequence that an individual perceived as a result of the relationship with another. Nevertheless the major concern of this theory is pay; an employee wants to be appreciated in all work functions. Equity is multidimensional in nature; hence employees form perception in what consolidates a fair of outputs and inputs. Various researchers have used various instruments for research. Halil Zaim and Selim Zaim (2010) researched employee satisfaction in small and medium sized enterprises by considering factors such as pay, management, working environment, pay and benefits. In this respect, a multi-item scale was used to develop the employees’ satisfaction construct in various contexts (Snape & Redman, 2010). In the second section of the survey, a single question relating the employee’s overall evaluation on the organisation’s loyalty was asked. Each item was linked to the five-point Likert scale that ranged from “very low” to “very high”. The findings suggested a positive correlation between all the five factors of employee satisfaction (Brikend, 2011; Howell, 2007; Gam, 2008; Scroggins, 2008). A research by Hancer and Thomas (2003) used the Minnesota Satisfaction Questionnaire (MSQ) in studying the job satisfaction in the restaurant. In this respect, the instrument used a factor analysis in investigating the dimension if the MSQ. From the above research analysis, it is evident that the growth of the employee satisfaction is imperative. A few factors that were pronounced were promotion, income, work environment, wages, and relation to superiors among others. 3.0 Recommended Research Design and Methodology This study will follow a qualitative study. This is imperative since this study will evaluate fully into the phenomenon of job satisfaction, considering attitudes and feelings of McDonald’s employees with respect to job satisfaction. The signature strength of qualitative research is its propensity to offer complex textual descriptions regarding how individuals experience a given research issue (Dillman, 2008). Evidently, it provides a detailed description of the case study, offering an analysis of issues and themes. In-depth interviews and structured questionnaires will be adopted. Contrariwise, questionnaires, notably Andrew and Withey job satisfaction questionnaire will be used in gauging the researchers’ specific attributes (Dillman, 2008; Dessler, 2008). In other words, it is a unidimensional questionnaire that measures global job satisfaction. It consolidates a five-point Likert scale (ranging from very satisfied to very dissatisfied). Its reliability, construct validity and internal consistency satisfied the research criteria. The following questionnaires were designed to cover specific attributes; i. Are you satisfied with the pay rate? ii. Do you have freedom to make input with respect to standards and objectives? iii. Do you generally experience stress at the workplace? iv. What are some of the ethical challenges witnessed in the workplace? v. Is McDonald’s a flexible employer? 4.0 Sampling A descriptive research has been applied to the population being studied. In order to cater for the need for the study, primary (self-constructed Questionnaire) has been used in guiding the paper. Questionnaires were administered. The guidelines were twofold where the willingness to participate in an interview will rely on how well the participants understood what the study was about, what is expected if they participated, how their privacy would be respected and the voluntary nature of the participants in the research. An independent Dropbox account was set up where respondents could access and submit the questionnaires. The questionnaires were administered to the participants at the workplaces at a time convenient for the research, given the relative nature of work. The research was done in five randomly selected restaurants and took two weeks for all the data to be collected Population and Sample Size In terms of this research, a study population of individuals employed with McDonald’s chain of restaurants was used. Although McDonalds employs over 90,000 employees, a target population of 200 participants was selected. A random selection of this participants was imperative, so as to offer an exact representation of the workforce. The study participants included information regarding their age, gender, education status and primary job responsibility. However, only 124 of them responded to the questionnaires 4.0 Data Collection and Analysis The following data was collected with respect to McDonald’s satisfaction i. Pay Rate Satisfaction Table 1 Frequency percentage Strongly Agree 80 33.33 Agree 10 4.16 Neutral 0 0 Disagree 30 12.5 Strongly Disagree 4 1.6 ii. Are the working conditions good for McDonalds? Table 2 Frequency percentage Strongly Agree 120 96.77 Agree 2 1.61 Neutral 0 0 Disagree 2 1.61 Strongly Disagree 0 0 iii. Is the workplace Flexible Table 3 Frequency percentage Strongly Agree 100 41.7 Agree 18 7.5 Neutral 0 0 Disagree 4 1.7 Strongly Disagree 2 0.83 iv. Do you generally experience Stress at the workplace? Table 4 v. What are some of the ethical challenges witnessed in the workplace? Strongly Agree Agree Disagree Strongly Disagree Health Diets 0 2 3 119 Inadequacy in Compensation mechanism 0 30 4 90 Appropriate Change Process 0 90 10 24 Analysis 4.1.1 Pay Rate Satisfaction Findings suggest that the fast food industry showcase that the workers are not satisfied with their pay. Table 1 shows a negative response rate of 1.6 % suggesting that respondents were not satisfied with the pay. On the other hand, a large percentage of 33.33 % of the respondent articulated to McDonalds as well paying. 4.1.2 Working Conditions The results show that the employees at the McDonalds work in good working conditions. Evidently, 96.77 percent of the respondents strongly agreed that McDonalds offers proffered working conditions while working at the franchise. On the other hand, only 1.61 percent of the employees disagreed with the fact that working conditions were suitable enough for the employees. 4.1.3 Stress at the Working Place 80.6 percent of the participants approved that they experienced minimal stress at the workplace. This could probably be attributed to transformational leadership among the supervisors who are well versed with the employees needs at various levels. 4.1.4 Flexibility at the Workplace Many of the employees consider McDonald’s as a preferred and suitable job, contrary to other fast foods in Australia. This is attributed to the McDonald’s flexibility; as such employees can choose hours that they would be available for work in advance and shifts are scheduled within such availability. This offers ultimate flexibility, which enables them adjust their working schedule and avoid conflicts. 41. 7 % of the respondents articulate to the relative flexibility of the workplace environment. 4.2 Discussion 4.2.1 Employee Satisfaction at McDonalds It is evident that various attributes influence the firm’s functionality. Addressing issues of pay is instrumental in various attributes. Job satisfaction is considered an imperative aspect of any organisations (Parvin & Kabir, 2011; Fred, 2011; Rijalu, 2014; Danish & Usman, 2010; Ramasodi, 2010). From the results, it is imperative that McDonalds maintains a preferred payment strategy is adequately meeting the employees need amidst its business change. Regarding the overall perception of job satisfaction more than half of the participants were satisfied. Arguably most participants were satisfied or very satisfied with their immediate managers. Contrariwise, almost three-quarters of the sample were dissatisfied with the working environment under which they were working on. However, workers that were full-time employees within the establishment reported a lower level of satisfaction as opposed to those that did their job on part time basis. 4.2.2 McDonald’s as an Employer of Choice Contrariwise, students that worked within the establishment showcased a high level of satisfaction. This could be attributed to the relative propensity in gaining skills while working at the establishment, hence making them more confident with their careers. Tentatively, apart from the social intentions, they are also attracted to complementary services offered by McDonalds, which include but not limited to discount cards and a free meal at work. Attributes such as flexibility in the workplace, working conditions, reduced stress and better play significantly contribute to the employee’s perception of satisfaction at McDonald’s. The participants are working conditions at McDonalds showcase that 96.77 % of the respondents strongly agreed to these assertions, whereas 80.64 % of the respondents articulated to limited workplace stress at McDonald’s. 4.2.3 What is conceptualized as good or not good about Working for McDonald’s? The shift in McDonald’s business strategy warrants changes in the compensation received by the employees. Evidently, 14.1 % of the participants showcase their dissatisfaction with McDonald’s pay rate. These could be possibly due to aspects of payment regarding overtime when functioning at the restaurants. 4.2.3 What are ethical issues felt by the employees with respect to workplaces or management policies? From the research finding, a number of ethical challenges are witnessed. 12.5 % of the employee evidence inadequate compensations strategies in place. Possible reasons for such ethical challenges could arise in cases when employees working night shift are not well compensated. 4.3 Ethical Consideration The main ethical challenge was the respondent’s right to self-determination, confidentiality and anonymity. The questionnaires sheets were designed in such a manner that did not require the inclusion of the participants’ actual details. Each respondent was identified with a unique code unknown to the researcher. Tentatively, the questionnaires were kept confidential, where the respondents were assured of their rights to withdraw from the research at a time of their choosing. 4.4 Validity and Reliability of Data A frequency distribution was used in describing the sample. Cronbach’s alpha coefficient was created into determine the inter-item consistency reliability of the various attributes of the job satisfaction. The standard deviations of the divergent job satisfaction were computed. A comparison of job satisfaction was compared with the proposed new measurement and traditional questionnaires. For the proposed approach, the alpha range was consistent between 0. 65 to 0.86 for perception items as shown in the table below: Attributes Total Number of items Cronbach Alpha Aa Ib Gc Xd Pay 1 0.6482 0.7170 0.5122 0.7675 Working Condition 1 0.7420 0.5534 0.6463 0.7538 Stress 1 0.7205 0.4942 0.5924 0.7280 Flexibility 1 0.8281 0.8253 0.8127 0.8392 4.6 Research Limitation i. Financial limitation significantly reduces the propensity to research additional outlets. A broad research on larger participants is important in gaining enough insights regarding the scope of the research ii. The findings were limited only to McDonalds employees hence it cannot be used by a different firm sin analysing such important constraints. 5.0 Conclusion From the research, it is evident that workplace satisfaction is an important aspect of any firm, notably in the fast food industry. This is attributed to the need to maintain a competitive team and employees that are attuned to maintaining the firm’s competitiveness. Given the data obtained from the research interval data analysis would be well placed in analysing the research findings. Evidently, the use of interval data enables the addition of mean, standard deviations and product moment correlation since the interpretations of such variables cannot be changed in the linear transformations (Luce, 195 et al., p.84). It is advised therefore that a manager at McDonald’s empowers its employees in achieving preferred productivity and development at the firm and market level. Fast food workers should be empowered in different ways such as they should be given an opportunity to be included in decision-making process. This can be supported by allowing them to share their views regarding pressing issues. A good degree of autonomy should be enhanced in performing other functions within the restaurant. 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